Marico Limited · NSE:MARICO
Marico — Investor Presentation (September 2012)
20 slides from Marico's investor presentation, September 2012
Slide 1: Marico: be more. every day.
MalrlCO be more. every day.
Slide 2: Disclaimer
Disclaimer This investor presentation has been prepared by Marico Limited (“Marico”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not
Slide 3: Marico
Marico Beauty & Wellness Solutions Hair Care, Health Care, Skin Care Products & Services (Solutions) Successful transformation from an edible oils business A leading Indian MNC Group Market Capitalization ~ Rs. 10,000 Crore + (~USD 2 Billion) Turnover FY 12 ~Rs. 4008 Crore (~USD 818 mill
Slide 4: Beauty & Wellness Brands
Beauty & Wellness Brands Hair Care Hair Oils Pre wash & Post wash Healthcare Healthy edible oils Functional Foods Skincare Cosmetic dermatological Services/Products Male grooming/ styling Deodorants Hair Creams/Gels 4
Slide 5: Aim to Create Market Leadership Brands
Aim to Create Market Leadership Brands Indicative Market Brand Category Rank Share (%) # Parachute Coconut Oil (India) ~ 46% 1 Parachute Coconut Oil (Bangladesh) ~ 80% 1 Super Premium Refined Saffola ~ 55% 1 Edible Oils Mediker Anti Lice Treatment ~ 96%* 1 Revive Instant Fabric Starch ~ 65%* 1 Parac
Slide 6: Segments with Relatively Lower Competitive Intensity
Segments with Relatively Lower Competitive Intensity • Not a battleground for multiple large MNC players – Coconut Oil in India and Bangladesh – Hair Oils in India – Super Premium Refined Edible Oils in India – Post Wash Hair Care • Hair Creams / Gels / Post wash conditioners – Healthy Breakfast Foo
Slide 7: Focus on Growth
Focus on Growth • Prioritize volume growth over short term profit • Volume growth to expand consumer franchise – Maintain unit margin within a band • Re-invest profits to reinforce established brands and build new growth engines for the future – Prototyping – Strategic Funding (% of profits each yea
Slide 8: Inorganic Growth
Inorganic Growth • Focused on hair care, skin care and health care in India – International : primarily hair care and skin care • Internationally focused on developing markets in Asia and Africa • Establish potential to add value in branding and distribution • Enhance depth of category knowledge in
Slide 9: Key Focus Areas
Key Focus Areas • Branding – Consumer Insight • Distribution – Network Reach and Quality – leveraging Information Technology • Innovation – Product and Process • Talent 9
Slide 10: Coconut Oil
Coconut Oil Volume Market Share Parachute CNO47% Market Size Nihar 6% OOM 1% Branded ~ INR 24 bn (~USD 490 mio) Total 54% Loose ~ INR 8 bn (~USD 175 mio) Volume growing in rigid packs ~10% • Grow the branded market Conversion of loose to branded Micro marketing • Focus on smaller market segments •
Slide 11: Hair Oil
Hair Oil • Market Share of Marico in Hair Oil Market ~ 24%, up from 17% in FY 04 • Aims to Gain Market Share in ~INR 3500 (~USD 710 mio) category • Significant participation in all key sub-segments – Value added coconut oils – Light Hair Oils – Amla based oils – Cooling Oils – Ayurvedic Oils Likely
Slide 12: Edible oil to a Lifestyle Brand
Edible oil to a Lifestyle Brand Riding a Healthcare Trend Low-Sodium Salt First in refined oil ‘blends’ Edible Oil Functional Foods Lifestyle products Space 12
Slide 13: Marico acquires personal care brands of Paras
Marico acquires personal care brands of Paras Marico entered into an agreement to acquire the Personal Care business of Paras from Reckitt Benckiser The transaction is likely to get consummated by June 2012 This acquisition gives Marico an opportunity to participate in the rapidly growing male
Slide 14: International Business Group
International Business Group Turnover (Rs Cr) 1200 38% GR 955 CA 1000 733 800 602 600 440 400 307 193 200 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 • Growth in FY12 : 30%, boosted by the acquisition of 85% equity in ICP in Vietnam in February, 2011 • Comprises about 24% of Group Revenue (~US
Slide 15: Kaya Skin Care Solutions
Kaya Skin Care Solutions • Turnover in FY12 Rs. 279 Crores (~USD 56 mio) – Growth of 33% – Including Derma Rx • Revenues ~INR 65 Crore (~USD 13 mio) • Double digit PAT margins • 107 Clinics – 82 in India, 19 in the Middle East, 2 in Bangladesh, 4 in Singapore and Malaysia • Customer base more than 6
Slide 16: Future Growth
Future Growth • Expand Markets where we have dominant share – Parachute coconut oil in India and Bangladesh – Saffola – Premium healthy refined edible oil – Tapping Rural growth • Increase Share in other categories – Hair Oils in India – Hair creams & gels in the Middle East • Introduce new products
Slide 17: The most awarded FMCG
The most awarded FMCG • Featured amongst eight Indian companies in Standard & Poor’s list of Global Challengers • Featured as Most Innovative Company in Business Today Kaya Ltd. won the Asia Best Employer Brand Awards 2011 for ‘Excellence in Training’ • India’s Employer of Choice- CNBC-TV18, U21 G
Slide 18: Thank You
marico Thank You
Slide 19: Consumer Products Business
Consumer Products Business Coconu t Oils Hair Care Health Care 19
Slide 20: International Business Group
International Business Group Cocon ut Oil Health Care Skin Care Hair Care 20